By Benadeta Mwaura - Reporter
Kenya , June 11 , 2026 - Kenya is accelerating its reliance on Public-Private Partnerships (PPPs) as a central pillar of infrastructure financing, with the government targeting over KSh 70 billion in private capital investment in the 2026/27 financial year to support major national development projects across transport, energy, water, housing, ICT, and logistics sectors.
Treasury Cabinet Secretary John Mbadi told Parliament that the scale of Kenya’s development agenda requires deeper collaboration with the private sector to complement limited public resources, while also enhancing efficiency, innovation, and risk-sharing in project delivery.
“Mr. Speaker, the scale of Kenya's development ambitions demands that we leverage not only public resources but also the capital innovation and expertise of the private sector,” Mbadi said.
He emphasized that PPPs have become a core financing mechanism under the government’s Bottom-Up Economic Transformation Agenda, allowing the state to accelerate infrastructure delivery while reducing direct fiscal pressure on the national budget.
“Public-Private Partnerships have therefore become a central pillar of our development financing strategy,” he said, adding that the model enables government to harness private sector expertise while preserving fiscal sustainability.
According to Mbadi, the PPP framework has already mobilised approximately KSh 96 billion in private investment, including financing for key road infrastructure projects such as the Rironi–Gilgil (A8) and Nairobi–Maai Mahiu–Naivasha (A8 South) sections of the Nairobi–Nakuru–Mau Summit Highway.
He said the government now aims to mobilise at least KSh 70 billion in additional PPP investments in the current financial year, targeting priority sectors including energy, transport, water, housing, health, and digital infrastructure.
Among flagship projects highlighted are the Nairobi–Mombasa Expressway and the Mau Summit–Eldoret–Malaba Highway, both expected to enhance regional connectivity and strengthen Kenya’s role as a Northern Corridor logistics hub.
In the energy sector, Mbadi pointed to major planned investments including the High Grand Falls Hydropower Project, expected to generate 700 megawatts, and the Karura Hydropower Project, which will add a further 90 megawatts.
“Together, these projects will add approximately 790 megawatts of clean and reliable power to support industrialization, digital transformation, and emerging technologies,” he said.
The government is also advancing key water infrastructure projects, including Radat Dam, Barsalinga Dam, Lowaat Dam, and Soin Koru Dam, aimed at improving irrigation, water security, and climate resilience in water-stressed regions.
In the ICT sector, PPP-driven projects such as the Kenya National Data Centre and Konza Data Centre are expected to strengthen digital infrastructure, support data sovereignty, and position Kenya as a regional technology hub.
Mbadi said the combined value of ongoing and planned PPP projects exceeds USD 10 billion, reflecting the scale of private sector participation in Kenya’s infrastructure development agenda.
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“Together, these projects represent investments valued at over USD 10 billion and will support economic growth, improve service delivery, create jobs, and strengthen Kenya's productive capacity,” he said.
To support faster project delivery, the National Treasury has introduced a Rapid Results Initiative framework to accelerate identification and preparation of PPP projects across government agencies.
Mbadi also said the government is finalising PPP regulations and guidelines to fully operationalise the PPP Act, alongside new disclosure requirements for privately initiated proposals aimed at improving transparency and accountability.
“These circulars aim to enhance uniformity, transparency, accountability, and build public trust by enabling timely disclosures, integrity and standard reporting,” he said.
A key shift in the PPP strategy is increased participation by Kenyan investors, including pension funds, insurance firms, SACCOs, and retail investors, through mechanisms such as the National Infrastructure Fund.
Mbadi said the objective is to ensure that infrastructure investments are increasingly financed and owned locally, reducing foreign exchange risks while strengthening domestic capital markets.
“Our pension funds, insurance companies, SACCOs, and retail investors will increasingly have opportunities to participate in strategic national investments,” he said.
He added that mobilising domestic savings into infrastructure projects would ensure that economic gains and returns remain within the country, reinforcing long-term financial sustainability.
“Kenya is not just open for business, Kenya is investing in itself,” Mbadi said.
The expanded PPP framework signals a structural shift in Kenya’s infrastructure financing model, with private capital expected to play a larger role in closing development gaps while easing pressure on public debt.
However, the success of this model will depend on regulatory certainty, project bankability, and the ability to balance investor returns with public affordability and long-term fiscal sustainability.